Nike “Just Do It”

The Beginnings 1962 – Phil Knight & Blue Ribbon Sports 1964 – Bill Bowerman (U of Oregon) joined him to design running shoes Nike – “winged Greek Goddess” & the “fat check mark” was a compromise (cost $35) Steve Prefontaine (runner) was the first endorsed athlete – against the establishment Boston Marathon – first event (Jon Anderson won in a pair of Nikes)

Formative Years 1974 – Waffle trainer Brand choice of mass market influenced by top athletes 1980 – surpassed Aidias as the #1 shoe company with 50% market share Running was the key – aerobics became popular and Reebok reigned Focus on innovation, males and serious athletes rather than style and females – lost share to Reebok

Transitions Became more marketing oriented – consumer focus rather than product focus Shoes, colors, clothes, athletes, logos and TV advertising Up until now, only advertised in peer running journals Weiden & Kennedy – Air Max “revolution in motion”

The Reign of Air Jordan Focus on basketball – signed rookie Michael Jordan b/c Nike offered more than Aidias Nike sold $100 million Air Jordans in the first year

Just Do It Reebok paid too little attention to performance so Nike regained market share 1988 – Just Do It $20 million month long blitz (12 TV spots) urged Americans to participate in sports Attitude of self empowerment through sports – both celebrity and non celebrity endorsers By 1990 – Sales $2 billion

Just Do It EKINS – sports loving employees who hit the streets to disseminate Nike information Brand Strength Monitor – tracked consumer perceptions 1991 – Sales $3 billion; by 1993 Nike athletes include 265 basketball players, 275 NFL football players, 290 baseball players and college coaches and players Emphasis on top line performance wear

The Image Crisis Labor practices Ubiquity of the swoosh Asia plants – unsafe working conditions, uncompensated overtime, underage workers Boycotts, letters of protest and lawsuits Nike implemented changes as a result Ubiquity of the swoosh Too many swooshes; too aggressive corporate philosophy

The Swoosh Downplay logo displays Nike – all small letters Separate business units for Jordan, All Conditions Gear (ACG) and NikeGolf Brands Nike Alpha Project – most technologically advanced project

The Here and Now Caught behind the curve for “action sports” and “brown shoes” Not perceived as “cool” Revitalize ACG Now on the upswing for revenue and growth in soccer and apparel Tigers Woods & Tour Accuracy Ball

Challenges What is Nike’s Brand Image and sources of brand equity? What should Nike do to become “cool” again? How should Nike attempt to reach young consumers?